SINGAPORE/LONDON—The yen traded flat on Wednesday after surging almost 4 percent in the previous session, when the Bank of Japan (BOJ) unexpectedly tweaked a key policy, allowing government bond yields more room to move.
The BOJ decided to change its “yield curve control” policy on Tuesday even as it kept broad policy settings unchanged. It is now letting 10-year yields move 50 basis points on either side of its 0 percent target, wider than the previous 25 basis point band.
On Wednesday, the yen was last up less than 0.1 percent, trading at 131.55 per dollar, not far off the four-month high of 130.58 touched on Tuesday, when the yen jumped 3.8 percent in its biggest one-day rise since 1998….